Complete news archive

  • Coupon clippers

    Euro CLO refi activity to accelerate

    Refinancing activity is expected to accelerate in Europe in the coming year as the cost of funding encourages more CLO managers to employ the option. Anticipating the impending refinancing wave is deemed significant from both a market value and portfolio management perspective.

    "Most European CLO 2.0 deals include provisions for refinancing within the documentation," says Angus Duncan, partner at Cadwalader, .......

    News Analysis 16 December 2016

  • Learning by doing

    Issuers weigh capital relief opportunities and challenges

    Capital relief trades, also called risk sharing trades, can provide issuing banks with several advantages. However, the transactions are not always well understood by the wider market and even those banks that are involved are learning lessons with each passing deal.

    Nordea Bank dipped its toe into the capital relief trade space earlier this year, making a splash with its .......

    News Analysis 16 December 2016

  • US CLOs keep tight

    US CLO secondary spreads are keeping tight as demand continues.

    "Secondary is still very tight despite the continued flow of re-sets," says one trader. "In particular, the double-B rally continues but is still offering relative value and seeing strong demand."

    The trader adds: "Overall we have created a market where people are happy to chase paper. As a result, secondary .......

    SCIWire 15 December 2016

  • 'Mixed effects' from rate hikes

    The US Federal Reserve has raised interest rates from 0.25% to a range of 0.50%-0.75%, which will have varied implications for structured finance, according to Moody's. The rating agency adds that it expects the Fed to raise rates three more times in 2017 to 1.25%-1.50% year-end.

    Moody's comments that US consumers are generally "well-positioned to cope with rising debt expenses .......

    News Round-up 15 December 2016

  • GSEs introduce new mod programme

    Fannie Mae and Freddie Mac will each offer a new flex modification programme to replace their versions of HAMP, which is set to expire at the end of this year. The GSEs developed the flex modification programme in alignment with each other and at the direction of the FHFA.

    The flex modification programme is expected to provide a 20% payment .......

    News Round-up 15 December 2016

  • ABSPP external managers cut

    The ECB's governing council has decided that the ABSPP should now be fully implemented by national central banks, rather than relying on the support of external managers. This is a change which was planned when the programme was first launched.

    As of 1 April 2017, Nationale Bank van België/Banque Nationale de Belgique, Deutsche Bundesbank, Banco de España, Banque de France, .......

    News Round-up 15 December 2016

  • CNL expectations recalibrated

    Moody's has taken rating actions on four TCF Auto Receivables Owner Trust transactions issued in 2014 through 2016, affecting approximately US$944m of ABS bonds. The move reflects a change in the calculation of net loss from that used in previous ratings for the transactions.

    Specifically, the agency has upgraded one security, downgraded two securities and affirmed the ratings of 17 .......

    News Round-up 15 December 2016

  • NPL ABS volumes gauged

    Current global non-performing loan assets could translate to potential securitisation volumes of US$270bn-US$900bn, assuming a 15%-50% discount to the par value, according to S&P estimates. However, given that new NPLs may only arise as institutions raise capital to absorb losses, the figure could be much larger.

    NPL securitisations have historically involved mortgage assets. However, with the recent commodities bust and .......

    News 15 December 2016

  • Euro issuance drops

    €40.2bn of securitised product was issued in Europe in 3Q16, according to AFME's latest securitisation data report. This represents a decline of 46.5% from 2Q16 (€75bn) and a decline of 30.3% from 3Q15 (€57.6bn).

    Of the €40.2bn issued, €16bn was placed (representing 39.8% of issuance), compared to €29.3bn placed in 2Q16 (representing 39.1%) and €18.6bn placed in 3Q15 (representing 32.3%). .......

    News Round-up 15 December 2016

  • Euro secondary unmoved

    The Fed's announcement yesterday appears to have had little effect so far as the European securitisation secondary market resolutely sticks to recent patterns.

    There continue to be pockets of activity across the ABS/MBS secondary market. Tone generally remains positive and spreads unchanged with the exception of Portuguese paper, which continues to edge wider.

    However, CLOs are busier in comparison with .......

    SCIWire 15 December 2016

  • Second Salisbury prices wider

    Lloyds has closed a capital relief trade referencing a £2.1bn granular portfolio of UK SME loans. The 10-year Salisbury II Securities 2016 deal pays Libor plus 12%, above the plus 10.25% print of the lender's previous Salisbury Securities 2015 transaction.

    The £789.4m 2015 deal was also a granular synthetic SME securitisation. The 2016 deal, however, is more diversified, with 40% .......

    News 14 December 2016

  • Climate recommendations welcomed

    Recommendations for improved quantitative and qualitative climate-related disclosures could increase the importance of climate-related risks and opportunities for corporations and investors alike, says S&P. Climate-related financial disclosures should help investors assess risk and improve allocation of capital.

    The recommendations are the result of a year's work by the Task Force on Climate-Related Financial Disclosures (TCFD). The task force was created .......

    News Round-up 14 December 2016

  • Executive promotions inked

    PennyMac Mortgage Investment Trust has announced changes in the roles of six executive officers in conjunction with organisational changes at PennyMac Financial Services, its manager and service provider. The changes are effective from 1 January 2017.

    Under the reorganisation, chairman and ceo Stanford Kurland will assume the role of executive chairman, while executive md, president and coo David Spector will .......

    Job Swaps 14 December 2016

  • EM team bulks up

    Nomura has hired Dimitrios Vlachos as an associate for its emerging markets division. He joins the structured credit trading team and will be based in the London office.

    Vlachos previously worked for Credit Suisse in the emerging markets fixed income trading division, working in credit derivatives.

    .......

    Job Swaps 14 December 2016

  • ILS firm makes exec changes

    ReannaisanceRe has promoted Sean Brosnan to svp, cio, while Aditya Dutt, president, will take on the additional role of treasurer. Todd Fonner, cio and treasurer, is to leave the company.

    Brosnan has been with RenaissanceRe since 2004 and was most recently md for investments of Renaissance Services of Europe and ceo for Renaissance Reinsurance of Europe. Prior to this, he was head .......

    Job Swaps 14 December 2016

  • LatAm markets 'will rebound'

    Donald Trump's election victory has implications far beyond the US, not least in Mexico, where potential US policy changes will weigh on economic growth. Mexican RMBS should remain steady, however, while Moody's believes Argentina and Brazil are set to return to growth in 2017, helping to support the credit quality of assets backing securitisations in those countries.

    The Mexican RMBS .......

    News Round-up 14 December 2016

  • Esoteric ABS forecast issued

    Continued slow economic growth should have a positive effect on US commercial and esoteric ABS sectors in 2017, including railcar lease, fleet lease and mobile phone financing securitisations, says Moody's. Modest global economic growth will also help aircraft securitisations and perhaps even restaurant whole business securitisations, although anaemic growth in global trade will be a negative for container lease ABS.

    News Round-up 14 December 2016

  • Replacement chiefs named

    Och-Ziff Capital Management has named Alesia Haas cfo and David Levine chief legal officer. Current cfo Joel Frank and chief legal officer David Becker have each decided to retire.

    Haas previously served as cfo and head of strategy for OneWest Bank. Her prior experience includes senior finance, investment and strategy roles with Merrill Lynch and General Electric.

    Levine has been .......

    Job Swaps 14 December 2016

  • Solutions group formed

    CST Trust Company has entered the Canadian custody market as a National Housing Act (NHA) MBS custodian and title custodian, following its qualification last week by the Canada Mortgage Housing Corporation (CMHC). As the first new entrant to the market in 30 years, CST aims to transform the documentation and tracking processes around Canada's NHA MBS programme through state-of-the-art technology .......

    Job Swaps 14 December 2016

  • Mammoth NPL ABS planned

    UniCredit has unveiled plans to divest €17.7bn of NPLs, as part of an effort to deleverage its non-core portfolio. Dubbed Project Fino, the strategy involves transferring two portfolios of NPLs to SPVs in which the bank will retain a minority position.

    Fortress and PIMCO will each manage an entity and take a majority position, which is initially expected to be .......

    News Round-up 14 December 2016

  • US CLOs stay strong

    The US CLO secondary market remains strong.

    "There's not a huge amount going on because of the time of year, but what is trading is trading pretty well," says one trader. "In fact we're trading more CLOs above par than ever before."

    Investor appetite is now evident throughout the capital structure, the trader notes. "For a long time the bottom .......

    SCIWire 13 December 2016
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